Gas and Oil Pakistan Limited Targets Growth with $10 Billion Sukuk Issuance

KARACHI: Gas and Oil Pakistan Limited, a key player in the country’s oil marketing sector, is preparing to issue a short-term, privately placed Sukuk valued at approximately PKR 10 billion. The initiative is part of the company’s strategy to finance its working capital requirements and sustain its growth trajectory, according to information from The Pakistan Credit Rating Agency Limited.

The company benefits significantly from a strategic partnership with Aramco, which holds a nearly 40% equity stake. This relationship leverages Aramco’s global resources to strengthen Gas and Oil Pakistan Limited’s market position. The partnership has also led to Aramco representatives taking on roles within the company’s board of directors and management team.

Gas and Oil Pakistan Limited operates a vast retail network consisting of 1,329 outlets, including 75 company-owned, company-operated sites, many branded under the Aramco name. It maintains the second-largest storage capacity in the sector at about 205,038 metric tons. The company’s operations span procurement, storage, distribution, and marketing of petroleum, oil, and lubricants sourced both domestically and internationally.

Financially, the company has reported significant growth, with topline increases of 83.3% in the first nine months of 2025 and 36.1% in 2024. This growth is attributed to effective marketing strategies and stable cash flows. The company’s trade debts, primarily from government entities and corporate customers, were reported at approximately PKR 52.8 billion as of the first nine months of 2025. This marks a slower growth in receivables compared to revenue growth, reflecting a disciplined approach to working capital management.

Aramco’s equity injection through a rights issue has strengthened the company’s capital structure, reducing its reliance on external borrowings. This approach is further supported by significant supply credit extended by Aramco, providing a financial cushion.

The company’s future growth is also expected to be bolstered by its entry into the lubricants segment through a partnership with Valvoline. With a focus on maintaining its growth path, Gas and Oil Pakistan Limited remains committed to governance and control measures facilitated by its association with Aramco.